"Minimum Wage Socialism" is an article written by James A. Dorn, Vice president for academic affairs at Cato Institute, Examiner.com, issued in Forbes magazine. I find that article very interesting and I'd like to share it with you. According to the article, increasing the minimum wage may give "liberal" legislators great prides and win them votes, but it does not address the key issue of how to achieve economic growth and thus reduce poverty. Hong Kong has no minimum wage but is one of the most prosperous economies in the world - because it is also the freest. Economic freedom, not minimum-wage socialism, is the key to reducing poverty, as China is learning. If legislators really want to help the poor, the best thing they do is abolish, not increase, the minimum wage.
In America, the majority of low-income earners typically move up the income ladder by improving themselves, not because of the minimum wage. Policies that increase competition and choice in public education, reduce marginal tax rates on capital and labor, and protect private proverty rights would be steps towards increasing economic freedom, worker's dignity and prosperity.
